The Central Bank Of Malaysia

Better Essays

The economy of Malaysia in the 1970s had started growing due to the exports of raw materials. Since the nineteenth century, Malaysia had been a major supplier of primary products like; tin, rubber, palm oil, timber, oil, liquified natural gas to many of the industrialized countries. During this period there were over fifty banking institutions in Malaysia. The central bank of Malaysia which is the bank Negara Malaysia is the biggest in Malaysia
In the 1970 the leading sector in development had been a wide range of export manufacturing industries such as textiles, electrical and electronic goods, rubber products. In the 1980s, Malaysia was hit with a brief recession. Bank Negara Malaysia knew they had to come up with a plan to save …show more content…

The result has been dismal as shown in the slow reduction in the number of banking institutions in the table below.
1980 1990 1997 199
Commercial banks
* Domestic 21 22 22 21
* Foreign 17 16 13 13 Finance Companies 47 45 39 25 Merchant banks 12 12 12 12 Total 97 95 86 71

Banking, from its early days of inception, has undergone rapid changes, most especially within the past ten years, also as a result of major world events such as the 9/11 terror attacks and the consequential reactions of governments and within the industry itself. (Morgan McKinley UK)
Banking can be defined as the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. The invention of banking came before coinage. Banking originated in ancient Mesopotamia where people used to bank their grains for safe keeping and security provided by the royal palaces and temples. Thus people would take their grains or commodities to the royal place or temple for safe keeping and receipts would be given to the original debtors and also to third parties. This type of banking was basically done almost all over the world, eventually rules and regulations were introduced.
In Egypt the state provided warehouses where farmers could deposit their grains and they would receive receipts that show how much of their grain the bank is holding, the receipts were eventually used to pay debts to third

Get Access
Get Access